Confidence plummets in wake of COVID-19
Confidence in South Australia’s property sector has plummeted since the outbreak of the COVID-19 epidemic, matching the experience of other jurisdictions around the nation.
According to the latest ANZ/Property Council Survey, statewide confidence in South Australia sits at 60 for the June 2020 quarter, dropping 57 points since last quarter. The survey includes responses from property industry professionals from South Australia and across the country. A score of 100 is considered neutral.
The national average score is currently 62, which is the lowest confidence on record. Importantly, South Australia recorded the lowest quarterly drop in the country.
“It’s hardly surprising to learn that confidence across South Australia’s property sector has taken a hit since COVID-19 restrictions came into place, but the industry is doing what it can to support our economy,” said Property Council SA Executive Director Daniel Gannon.
“Property owners have been dealing directly with tenants to provide rent relief while also getting on with the job of building, employing and planning for the future recovery of the sector.
“More than 60 per cent of respondents believe this current crisis will have a significant impact on their business in the future, which is lower than expected and provides room for cautious optimism.
“However, it is vital for all levels of government to work with the sector to provide relief and ensure than landlords and tenants alike survive this hibernation period.
“While the State Government has been quick to work with the property industry, local government has been slower to move. They should urgently address their high commercial rates to ensure landlords are able to recover quickly once restrictions are lifted.”
The survey also revealed the following:
- National confidence sentiment dropped from 123 to 62
- State and national forward work expectations have fallen into negative territory
- Respondents expect COVID-19 to have a significant impact on construction schedules both in South Australia and across the country
- Residential capital growth expectations entered negative territory, after a high in South Australia last quarter
- The largest impact is expected in the hotels, leisure and tourism sectors
- The State Government performance index improved on last quarter
ANZ/Property Council Survey
Media contact: Daniel Gannon | M 0421 374 363 | E firstname.lastname@example.org